Story perspectives

Mayor Brian DePeña Arrested on Wire Fraud Charges

8/19/2026

Summary

Story summary

Federal agents arrested Lawrence, Massachusetts Mayor Brian DePeña on Friday, charging him with wire fraud and money-laundering.
Prosecutors say DePeña obtained $1.5 million in Economic Injury Disaster Loans and diverted $880,000 to mortgages, $90,000 to his campaign, and taxes.
A judge released him after he surrendered his passport and agreed not to seek additional loans.
U.S. Attorney Leah B. Foley warned the case could carry up to 30 years in prison.

History

Historical Context

The 2020 CARES Act created the Paycheck Protection Program, allocating $669 billion of forgivable loans through the Small Business Administration to stabilize businesses during the COVID-19 recession. Subsequent audits uncovered widespread fraud, prompting FBI investigations and U.S. Attorney Leah B. Foley’s warnings of long prison terms. The alleged diversion of disaster funds by Lawrence Mayor Brian DePeña echoes these earlier abuses.

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Story summary

Federal agents arrested Lawrence, Massachusetts Mayor Brian DePeña on Friday, charging him with wire fraud and money-laundering.
Prosecutors say DePeña obtained $1.5 million in Economic Injury Disaster Loans and diverted $880,000 to mortgages, $90,000 to his campaign, and taxes.
A judge released him after he surrendered his passport and agreed not to seek additional loans.
U.S. Attorney Leah B. Foley warned the case could carry up to 30 years in prison.

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